Nvidia Corp.’s reign as the world’s largest company didn’t last long.The semiconductor giant’s shares have tumbled on back-to-back days, after rallying earlier in the week and pushing its valuation to $3.3 trillion, above Microsoft Corp. and Apple Inc.
Traders said there were no fundamental reasons behind the two-day selloff, but if nothing else, it underscored the stunning pace at which the stock had climbed — nearly 200% in the past year alone — and how that climb is now making it. . Susceptible to sudden retreats like this.Given that the three megacaps jockeyed for the pole position all month, Nvidia, of course, could soon regain the top spot after shedding more than $200 billion in market value in two days.
“There’s nothing wrong with Nvidia, which rose to number one earlier this week,” said Russ Mold, investment director at AJ Bell. “It’s just the normal fluctuations in the stock market that, with such large companies, can destroy or add hundreds of millions or even billions of dollars to their market value.”
The drop also comes amid a broader market retreat as options expire in a so-called triple-witching session. As the contracts disappear, investors will adjust their positions, adding a burst of volume capable of swinging individual holdings.
